All 3 FICO scores taking a hit

[Nolan34]

I recently paid down quite a bit of debt to include paying off a loan. In the meantime, my mortgage was transferred to a new lender and alot of credit card debt utilization was minimized. My score for each has dropped about 30 points. Shouldn't it go the other way?

No lates at all or anything

Really confused

[Anonymous]

Part of the Fico score is credit mix. Credit mix includes open installment accounts. When an installment account is paid off, it is no longer open so it isn't included in that mix. Thus the score drops. It seems silly that we get penalized for paying off an account, but that's just the way it works.

[Nolan34]

Will my score improve over time (and continue what I've been for all this time) or is there any suggestion to bring my score back up? 

[Revelate]

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@Nolan34 wrote:

Will my score improve over time (and continue what I've been for all this time) or is there any suggestion to bring my score back up? 

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Most likely when your new lender reports the mortgage tradeline, assuming it keeps the same original balance (which it should) your scores will bounce back other than a possible AAOA loss from the new tradeline.

[Thomas_Thumb]

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@Nolan34 wrote:

I recently paid down quite a bit of debt to include paying off a loan. In the meantime, my mortgage was transferred to a new lender and alot of credit card debt utilization was minimized. My score for each has dropped about 30 points. Shouldn't it go the other way?

No lates at all or anything

Really confused

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The mortgage transfer may the primary factor here [for score drop]. Unfortunately the transfer could re-start your account age for the open mortgage. I had a mortgage transfer to another lender but account age remained intact. However, I had a credit card transfer and in this case my open account age dropped to new status. How long have you had the mortgage?

Transfer aside, total outstanding loan balance to total loan for all installment accounts is a factor in scoring. If the loan you paid off and closed was substantial, your balance to loan ratio increase could trigger a negative score change depending on how close you are to a threshold.

Regardless of the cause, you should regain points over time. You are on the right path. No need to change course - have patience.

[Nolan34]

i had the mortgage for four years. No lates